Item 30 - Agreement for Public Works Cost Recovery Analysis Services

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We can use actual time records in place of time estimates if a city employs a time -tracking system. We first review the data to determine if it is reliable enough for fee calculation purposes. We have found that time -tracked data often includes anomalous results caused by human error. If we can extract these anomalous results, this provides an excellent base for cost calculations. If the data is deemed insufficient in accordance with State guidelines, it still may be useful to spot check staff time estimates on a case -by -case basis, providing a higher comfort level for the city's decision makers. Case -study analysis method -some user fees aren't easily analyzed via the per -unit analysis method described above. For example, Santa Ana currently charges a fee of $1.75 per square foot for Sidewalk Inspections. However, your staff likely don't know how much time it takes to inspect only one square foot of newly constructed or repaired sidewalk. To overcome this, we work with your staff to identify: a) the typical project type/square footage for your city and 2) the reasonable time required to inspect a sidewalk project of this scope and size. Together, we can assess whetherthe current fee of $1.75 is too high ortoo low and the proper adjustment required to achieve full cost recovery. The results can then be extrapolated if decision -makers determine that a tiered structure is preferable due to economies of scale. Programmatic analysis method - some fee services do not lend themselves to either a per -unit or case -study method of analysis. An example includes a daily swim fee within a recreation department. Staff cannot tell us how much time they spend on one swimmer. Another example includes a general plan maintenance fee. Staff cannot quantify how their General Plan and related elements benefits specific proposed developments. Forthe latterfee, we calculate annual long- range program costs by amortizing staff and consultant fees associated with each element. Next we divide these total program costs by the annual fee revenue the surcharge will be applied against to calculate the appropriate surcharge amount. Share cost analysis with department contacts - Provide project status reports. 1) Incorporate new data received and email second draft results with backup calculations to each division/fee-area lead. Significant gaps between service costs and the fee currently charged are highlighted. 2) Review the second draft results with each division/fee-area lead. Incorporate in real- time anytime adjustments received during the meeting. 3) Establish a firm window for any additional time revisions. Government Consulting Partners �j City of Santa Ana PW Proposal 16 1111_ll